Theoretical and Positive Analysis about the Reason of the Decrease of Proportion of Local Tax Revenue in China

摘要

After the reform of the system of dividing taxes, the proportion of tax revenue in fiscal revenue of local governments in China decreased obviously. The reason of this phenomenon very complicated. The centralization of the system of dividing tax is an important reason. This can be demonstrated by empirical analysis. If we want to prevent the decrease of the proportion of tax revenue of local governments, we should decrease the centralization degree of the dividing tax system, make the system keep relative stabilization and srengthen the supervision of local people's congress to local governments.